A trade lane (or trade route) refers to a specific pathway along which goods are transported between two or more locations, typically across international borders. Trade lanes are established based on the flow of goods and the economic relationships between countries or regions. They encompass both maritime and air routes and play a crucial role in global supply chains by facilitating the movement of goods and fostering international trade.
Transit time refers to the duration it takes for goods or shipments to travel from their origin to their destination. It is a crucial metric in supply chain and logistics management, as it directly impacts delivery schedules, inventory levels, and customer satisfaction. Transit time encompasses the entire journey of a shipment, including transportation, handling, and processing at various checkpoints along the route.
Transloading refers to the process of transferring goods or cargo from one mode of transportation to another, typically from one type of truck or railcar to another, or from rail to truck and vice versa. This logistical practice is often employed to optimize transportation routes, reduce costs, and improve overall efficiency in supply chain operations.
A Transportation Management System (TMS) is a specialized software solution designed to streamline and optimize transportation and logistics operations within supply chains. It provides functionalities to effectively manage and control the movement of goods from origin to destination.
Transportation lead time refers to the duration it takes for goods to be transported from the point of origin to the final destination. It encompasses the time required for transportation activities, including loading, transit, and unloading, across various modes of transport such as road, rail, air, or sea.
A transshipment is the process of transferring goods from one transportation vehicle or vessel to another during their journey from origin to destination. It typically occurs at intermediary points along the supply chain route, where cargo is transferred between different modes of transportation, carriers or vessels.
Twenty-foot Equivalent Unit (TEU) is a standard unit of measurement used in the shipping industry to quantify the cargo-carrying capacity of container vessels. It represents the volume of a standard twenty-foot-long shipping container.
An Ultra Large Container Vessel (ULCV) is a massive container ship used on major trade routes, capable of carrying over 14,000 TEUs.
Vendor Managed Inventory (VMI) is a supply chain management strategy where the supplier or vendor takes responsibility for managing the inventory levels of their products at the customer's or retailer's location. In this arrangement, the vendor monitors the inventory levels based on agreed-upon criteria such as sales data or inventory levels, and initiates replenishment as needed.
Verified Gross Mass (VGM) is a term used in the shipping industry to refer to the total weight of a packed container, including its contents and packaging materials. It is a crucial requirement mandated by the International Maritime Organization (IMO) under the Safety of Life at Sea (SOLAS) convention to enhance safety in maritime transportation.
A floating structure with its own mode of propulsion designed for the transport of cargo and/or passengers. In the Industry Blueprint 1.0 "Vessel" is used synonymously with "Container vessel", hence a vessel with the primary function of transporting containers.
A vessel sharing agreement (VSA) is a cooperative arrangement between shipping companies that allows them to share space and resources on vessels for specific routes.
Vessel bunching refers to the situation where multiple vessels arrive at a port simultaneously or within a short period, leading to congestion and delays. This clustering of vessels can overwhelm port facilities, causing extended wait times for berthing, loading, and unloading operations.
A vessel call sign is a unique identifier assigned to a ship for radio communication purposes. It is used to distinguish the vessel from others in maritime communication systems, including VHF radios and satellite communications.
A vessel omission (sometimes called a port omission) occurs when a scheduled vessel does not call at a planned port during its voyage. This disruption means that the vessel skips the port entirely, which can impact the transportation and delivery schedules of goods.
In cargo shipping, vessel rotation is the planned sequence of port calls that a shipping vessel follows on its route to optimize cargo loading and unloading operations.
The timetable of departure and arrival times for each port call on the rotation of the vessel in question.
A journey by sea from one port or country to another one or, in case of a round trip, to the same port.
Warehouse utilization is a logistics metric that refers to the effective use of available warehouse space for storing goods and inventory.
Order for specific transportation work carried out by a third party provider on behalf of the issuing party.
Logistics yard management refers to the process of overseeing and controlling the movement of trucks, trailers, containers, and other vehicles within a yard or distribution center. This includes tasks such as scheduling, tracking, and coordinating the arrival, departure, and storage of these vehicles.
Transit time
What is transit time?
Container shipping transit time refers to the duration it takes for goods or shipments to travel from their origin to their destination. It is a crucial metric in supply chain and logistics management, as it directly impacts delivery schedules, inventory levels, and customer satisfaction. Transit time encompasses the entire journey of a shipment, including transportation, handling, and processing at various checkpoints along the route.
How to calculate transit times
Calculating cargo ship transit times involves the consideration of several factors, including:
- Distance: Measure the distance between the origin and destination points using geographic coordinates or mapping tools.
- Mode of transportation: Consider the transportation mode or modes being used, such as road, rail, air, or sea, and determine the typical speed or transit rates for each mode.
- Transit points: Account for any intermediate stops, transshipments, or transfers that may occur during the journey and the idle team associated with such stops.
- Customs clearance: Factor in the time required for customs inspections, documentation, and clearance procedures at international borders or ports.
By examining these factors, supply chain professionals can estimate transit times, enabling them to plan and manage logistics operations effectively to meet customer requirements and delivery deadlines. Supply chain visibility solutions can help operators understand how actual transit times compare to estimates so that supply chain planning and performance can be improved over time.
Lead time vs. transit time
Lead time refers to the total time required from the initiation of an order to its completion, including all preparation, production, and logistics processes. It encompasses all activities before the actual transportation begins. Transit time, on the other hand, specifically refers to the duration of the actual transportation of goods from the point of origin to the destination. While lead time includes transit time as a component, it also accounts for other factors like order processing and handling. Thus, lead time is the broader timeframe, whereas transit time focuses solely on the shipping period.
Is transit time the same as transportation lead time?
Yes, transit time is sometimes referred to as transportation lead time. However, transit time is the more commonly used term.
What is the average transpacific shipping transit time?
The average transpacific shipping transit time can vary depending on several factors, including the specific route, the ports of origin and destination, the shipping line, weather conditions, and any potential delays in customs clearance or port congestion. However, as a general estimate:
- For shipments between East Asia (e.g. China, Japan, South Korea) and the West Coast of the United States (e.g. Los Angeles, Long Beach, Seattle), the transit time typically ranges from about 15 to 25 days.
- For shipments between East Asia and the East Coast of the United States (e.g. New York, Savannah, Norfolk), the transit time is usually longer, ranging from 30 to 40 days or more, depending on the specific route and whether the shipment involves transshipment through a hub port.
What is the Suez Canal transit time?
The transit time through the Suez Canal can vary depending on several factors, including vessel size, speed, traffic congestion, and waiting times for passage. On average, the transit time through the Suez Canal for a typical container ship or bulk carrier can range from approximately 12 to 16 hours.
What is the Panama Canal transit time?
On average, the transit time through the Panama Canal typically ranges from about 8 to 10 hours for a standard-sized vessel.